Logistics Transportation Systems 9780128159743, 012815974X

Logistics Transportation Systems compiles multiple topics on transportation logistics systems from both qualitative and

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English Pages 454 [444] Year 2020

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Logistics Transportation Systems
 9780128159743, 012815974X

Table of contents :
Logistics Transportation Systems
1 Overview of transportation logistics
1.1 Introduction: what is transportation logistics?
1.2 The importance of transportation systems
1.3 The history of transportation systems
1.4 Transportation management
1.4.1 Logistics planning
1.4.2 Logistics functions
1.4.3 Logistics goals and strategies
1.4.4 Transportation processes
1.5 Logistics costs
1.6 Logistics/transportation cost implications
1.7 Transportation modes
1.7.1 Truck
1.7.2 Rail
1.7.3 Water
1.7.4 Pipeline
1.7.5 Air
1.8 Practical implications
1.9 Conclusion
1.10 Discussion questions
2 Network and cost analysis of transportation system
2.1 Introduction
2.2 Terminology
2.3 Transportation network
2.4 Classification of transportation network
2.5 Operational network structure
2.5.1 Direct shipping with milk runs
2.5.2 All shipments via central DC
2.5.3 Shipping via DC using milk runs
2.6 Hub advantages
2.7 Hub disadvantages
2.8 Performance criteria
2.9 Algorithms
2.10 Mathematical tools
2.11 Layers of network
2.11.1 Physical network
2.11.2 Operational network
2.11.3 Strategic network
2.12 Transportation cost
2.12.1 Transportation cost components
2.12.2 Transportation cost categories
2.12.3 Transportation cost function
2.12.4 Factors that influence transportation cost
2.13 Network problems
2.14 Conclusion
Further reading
3 Transportation infrastructure and equipment
3.1 Transportation infrastructure
3.2 Transportation equipment
3.3 Truck/road infratructures
3.4 Rail infrastructures
3.5 Maritime infrastructures
3.5.1 General cargo ships (sometimes called breakbulk carriers)
3.5.2 Bulk carriers
3.5.3 Container ships
3.5.4 Auto carriers
3.5.5 Tankers
3.5.6 Fishing vessels
3.5.7 Oil industry vessels
3.5.8 Passenger ships
3.5.9 Ferryboats
3.5.10 Tow and tug boats
3.5.11 Barges
3.6 Aviation infrastructures
3.7 Containerization
3.7.1 Advantages of container use
3.7.2 Disadvantages of container use
3.8 Significance of transportation infrastructure on economy
3.9 US transportation infrastructure plan
3.10 Conclusion
3.11 Discussion questions
4 Transportation rules and regulations
4.1 Introduction
4.2 Creating transportation laws
4.3 Federal transportation laws
4.4 Railroad industry regulations
4.5 Motor carrier regulation
4.6 Regulations in the airline industry
4.7 International water regulations
4.7.1 Freedom of the seas
4.7.2 United Nations Law of the Sea Convention
4.7.3 Protection of marine environment and biodiversity
4.7.4 Marine shipping and pollution
4.7.5 Polar code
4.7.6 Piracy
4.8 Importing procedures
4.8.1 Customs and importers
4.8.2 Entry of goods
4.8.3 Customs examination of entry goods/documents Importer obligations
4.8.4 Penalties
4.9 Trade agreements
4.10 Hazardous materials regulations
4.11 Foreign trade zones
4.12 Freight forwarding
4.12.1 Freight forwarding and 3PL logistic providers 3PL services versus freight forwarding
4.12.2 Freight forwarding and 4PL logistic providers
4.12.3 3PL logistic providers versus 4PL logistic providers
4.12.4 Fourth-party logistics is the best choice
4.13 Incoterms
4.14 Conclusion
Further reading
5 Intermodal transportation
5.1 Introduction
5.2 Modality
5.2.1 Unimodalism
5.2.2 Multimodalism
5.3 Intermodal freight transportation
5.3.1 Intermodalism
5.3.2 What is the difference? Intermodal transportation Multimodal transportation
5.4 Components of intermodal transportation
5.4.1 Containers
5.4.2 Carriers
5.4.3 Shippers
5.5 Domestic transportation
5.5.1 Domestic commodities
5.5.2 Domestic intermodal
5.5.3 Intermodal freight distribution in the United States
5.5.4 Trends of container freight shipments in the United States
5.5.5 Imported container distributions in the United States
5.6 International transportation
5.6.1 International commodities and trade
5.7 Selection criteria of mode of transportation
5.7.1 Cost of transportation
5.7.2 Dependability and consistency of service
5.7.3 Security
5.8 Last mile delivery
5.8.1 What is last-mile delivery?
5.8.2 Unique challenges of last mile delivery
5.9 Challenges of intermodal transportation
Further reading
6 Logistics transportation problems with linear programming
6.1 Overview
6.2 Introduction
6.3 Literature review
6.3.1 Linear programming
6.3.2 Transportation problems Transportation problem defined Importance of transportation problem and linear programming in business and industry Types of transportation problems
6.4 Solving transportation problems
6.4.1 LP Formulation Decision variables Objective function Constraints
6.4.2 Steps in solving a transportation problems Define the problem and prepare the transportation tableau Obtain an initial feasible solution North-West corner method Least-cost method Vogel’s approximation method Identify the optimal solution Demand not equal to supply (unbalanced problem)
6.5 Graphical method
6.6 Simplex method and the transportation tableau
6.7 Solver method
6.8 Sensitivity analysis
6.9 Conclusion
7 Assignment and transshipment problems with linear programming
7.1 Overview
7.2 Introduction
7.3 Literature review
7.4 Assignment problems
7.4.1 Methods of solving the assignment problem
7.4.2 Mathematical formula of solving assignment program using linear programming
7.4.3 Simplex (solver) method
7.4.4 The Hungarian algorithm
7.5 Transshipment problems
7.5.1 LP formulation for transshipment problem
7.6 Sensitivity
7.7 Conclusion
Further reading
8 Logistics customer services
8.1 Introduction
8.2 Definition of customer service
8.2.1 Elements of customer service Pretransaction elements Transaction elements Posttransaction elements
8.2.2 Relative importance of customer service elements
8.3 Order cycle time
8.3.1 Order cycle time adjustments
8.3.2 Priorities for order processing
8.3.3 Standards for order condition
8.3.4 Order constraints
8.4 Importance of logistics customer service
8.4.1 Service effects on sales
8.4.2 Service effects on customer retention
8.5 Sales–service relationship
8.6 Sales–service relationship model
8.6.1 Two-point method
8.6.2 Before/after experiments
8.6.3 Game playing
8.6.4 Buyer surveys
8.7 Costs versus service
8.8 Determining optimum service levels
8.8.1 Why is it important to identify optimum service level?
8.8.2 Practical implications
8.9 Customer service variability
8.9.1 Taguchi’s loss function
8.9.2 Supply chain visibility
8.10 Service as a constraint
8.11 Measuring logistics service quality
8.11.1 Service contingencies
8.11.2 System breakdown
8.11.3 Product recall and return
8.12 Conclusion
Further reading
9 Transportation rates and decision analysis
9.1 Introduction
9.2 Rates for different modes of transportation
9.3 Importance of choosing the most cost-effective transportation system
9.4 Service choices
9.4.1 Characteristics
9.4.2 Single-service choices
9.4.3 Intermodal services
9.5 Factors affecting transportation rates and costs
9.5.1 Product volume
9.5.2 Demand-related rates
9.5.3 Distance of travel (line-Haul rates)
9.5.4 Other factors affecting transportation rates and costs
9.5.5 Special service charges
9.6 Documentation
9.6.1 Bill of lading
9.6.2 Freight bill
9.6.3 Freight claims
9.6.4 International transport documentation
9.7 Approaches to negotiating transportation rates
9.7.1 Negotiation with individual carriers
9.7.2 Using a bid process
9.8 Collect and analyze data: preparing an request for proposal
9.9 Building strong service provider relationships
9.10 Post negotiation support
9.11 Common misconceptions in rate negotiation
9.11.1 You will always get the best rates when going directly to the carriers
9.11.2 Fuel surcharges cannot be negotiated
9.11.3 Freight bills are always correct
9.12 Analytical problems
9.13 Discussion questions
Review questions
9.14 Conclusion
Further reading
10 Transportation routing
10.1 Introduction to transportation routing
10.2 Choosing a route planning system
10.2.1 Schedule and route trucks on a day-to-day basis
10.2.2 Maximize fixed routes and schedules
10.2.3 Optimize deliveries continually
10.2.4 Support customers
10.2.5 Connect with live vehicle tracking
10.2.6 Consider “what-if” situations
10.2.7 Using multiperiod arranging
10.2.8 Makes programming advancement plans
10.2.9 Combines central scheduling
10.2.10 Focuses on reporting
10.3 Vehicle routing
10.3.1 Separate and single origin and destination points
10.3.2 Multiple origin and destination points
10.3.3 Coincident origin and destination points
10.4 Vehicle routing and scheduling
10.4.1 Routing and scheduling methods
10.4.2 Sweep method
10.4.3 Savings method
10.5 Transportation routing analysis geographic information system
10.6 Freight consolidation
10.7 Hazardous material (HazMat) routing and risks
10.7.1 Factors used to calculate the risk Factor for affected population Severity of hotspots Probability of accident Factor for emergency response Factor for reasonable deviation
10.7.2 HazMat route modeling Assessment and comparison of risk Hazmat routing model
10.7.3 Case analysis
10.8 Advantages of choosing the right routing system
10.8.1 Cost
10.8.2 Safety
10.8.3 Customer loyalty
10.8.4 Scalability with speed
10.8.5 Organizational control
10.9 Analytical problems
10.9.1 Solving routing problems using software
Further reading
11 Transportation security
11.1 Introduction
11.1.1 What is transportation security?
11.1.2 Safety versus security
11.2 Importance of transportation security
11.3 Cybersecurity in logistics transportation
11.3.1 Impact of cybersecurity on transportation
11.3.2 Benefits of cybersecuring transportation assets, goods, and people
11.3.3 Current cybersecurity challenges Dependence on mobile and web-based technologies Proliferation of internet of things Systems versus individual security
11.4 Security risk assessment
11.5 Practical implications
11.6 Transportation security in the United States
11.6.1 National Security Act of 1947
11.6.2 Maritime Transportation Security Act of 2002
11.6.3 Security and Accountability for Every Port Act of 2006 by Department of Homeland Security
11.6.4 US Department of Homeland Security
11.6.5 Transportation Security Administration
11.6.6 US Customs and Border Protection
11.6.7 Cargo security initiatives—C-TPAT by Customs and Border Protection
11.6.8 Secure Freight Initiative by Department of Homeland Security
11.7 Cost of security
11.8 Modal aspects of transportation security
11.8.1 Road transport security
11.8.2 Maritime security
11.8.3 Aviation transport security
11.9 Privately initiated transportation security
11.10 Conclusion
Further reading
12 Reshoring and its impact on transportation and economy—a US perspective
12.1 Introduction
12.2 What is reshoring?
12.3 Literature reviews
12.3.1 The reasons why those companies are reshoring
12.3.2 Economic impact of reshoring
12.4 Developing reshorability index
12.4.1 Step 1: Selecting socioeconomic factors
12.4.2 Step 2: Reshoring factors
12.4.3 Step 3: Weighting the factors
12.4.4 Step 4: Reshorability index
12.5 Implementation of reshorability index
12.5.1 Sensitivity analysis
12.6 Evaluating economic impact of reshoring
12.7 Economic impact analysis
12.7.1 NAICS 331: Primary metal
12.7.2 NAICS 332: Fabricated metal product
12.7.3 NAICS 315: Apparel
12.8 Analysis Summary
12.9 Conclusion and future research
13 Automotive transportation logistics
13.1 Introduction
13.2 Overview of automotive supply chain
13.3 Logistics functions and strategies
13.4 Significance of a supply chain and logistics in the automotive industry
13.4.1 Expertise
13.4.2 Opportunity cost
13.4.3 Decrease expenses for supplier management
13.4.4 Quality control
13.4.5 Mass production
13.4.6 Duty and freight weight
13.5 Contributors of the automotive supply chain
13.5.1 Automotive dealers
13.5.2 Original equipment manufacturers
13.5.3 Tier 1 suppliers
13.5.4 Tier 2 suppliers
13.5.5 Tier 3 suppliers
13.6 Challenges in automotive transportation
13.6.1 Inventory control and just-in-time delivery
13.6.2 Cost control
13.6.3 Globalization
13.6.4 Recalls
13.6.5 Supplier proximity
13.6.6 Flexibility
13.6.7 External factors
13.6.8 Market share
13.6.9 Sustainability
13.7 How the automotive industry plans and manages their transportation
13.7.1 Demand forecasting
13.7.2 Production planning
13.7.3 Facility location selection
13.7.4 Procurement
13.7.5 Information processing
13.7.6 Packaging
13.7.7 Material handling, warehousing, and storage
13.7.8 Inventory management
13.7.9 Transportation
13.7.10 Customer service
13.8 3PL: third-party logistics
13.9 Role of 3PL in the automotive supply chain
13.10 Conclusion
Appendix A: Impact of logistics cost on reshorability index
Appendix B: Correlation between different factors
Appendix C: Weight of different factors on different industries location
Appendix D: Reshorability index from China (3-digit NAICS code)
Appendix E: Reshorability index from China (4-digit NAICS code)
Appendix F: Reshorability index from China (6-digit NAICS code)
Appendix G: Logistics cost from China (6-digit NAICS code)
Appendix H: Score on different factors (US vs. India)
Appendix I: Reshorability index from India (3-digit NAICS code)
Appendix J: Reshorability index from India (4-digit NAICS code)
Appendix K: Reshorability index from India (6-digit NAICS code)
Appendix L: Score on different factors (US vs. South Korea)
Appendix M: Reshorability index from South Korea (3-digit NAICS code)
Appendix N: Reshorability index from South Korea (4-digit NAICS code)
Appendix O: Reshorability index from South Korea (6-digit NAICS code)
Appendix P: Score on different factors (US vs. Japan)
Appendix Q: Reshorability index from Japan (3-digit NAICS code)
Appendix R: Reshorability index from Japan (4-digit NAICS code)
Appendix S: Reshorability index from Japan (6-digit NAICS code)

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